Thursday, March 31, 2011

Looks like the end of redevelopment agencies may be near -- and local communities will be the ones to suffer.

"Where we go from here is a rough ride," emphasized Jim Wunderman, CEO of the Bay Area Council and keynote speaker at Wednesday's meeting of the Solano Economic Development Corporation in Fairfield.

In January, Gov. Jerry Brown announced plans to eliminate the 400 redevelopment agencies in California and redistribute the money to help close the multibillion-dollar budget deficit. The $2.5 billion in funding -- an estimated $84.2 million in Solano County -- supposedly would support education and public safety, with a portion returned to affected cities through their General Fund accounts to be spent at each city's discretion.

In quick order, Solano leaders and those throughout the state rose up in protest. They encumbered redevelopment funds and assets, transferring ownership of many redevelopment properties into the hands of their respective cities. Unfortunately, the governor later enacted legislation that could repeal such acts.

If Brown's objective is carried out, redevelopment agencies will cease to exist as of July 1.

All is not yet lost, advised Fairfield City Attorney Greg Stepanicich on Wednesday, explaining that the California Redevelopment Association has penned a viable compromise that provides additional funding for schools. An estimated $2.7 billion, he said, could be raised over 10 years.

Suzanne Bragdon, city manager of Suisun City, said the impact from losing redevelopment funding would be disastrous for her community. It's come a long way from being voted the Bay Area's worst place to live in 1987, she said, with $65 million invested to fix blight and become a dining and entertainment destination.

"We're about building places that are healthy and safe for you to live," Bragdon said, pointing out that more than 300 affordable housing units have since been built, businesses have flocked to the city and its waterfront, and crime rates have fallen 60 percent since the late 1980s.

"We had the worst economic meltdown anywhere and look at all the development that's happened," she said, indicating images of the city's revamped Crescent neighborhood, new neighborhoods created with redevelopment funding and more.

"Am I scared if redevelopment goes away? Absolutely," Bragdon added. "I don't want Suisun City to end up like it was in the 1980s. And I am truly afraid of that."

Decisions, Wunderman pointed out, are being made in a "climate of desperation." He described redevelopment as an amazing economic development tool that should be preserved. Perhaps, he suggested, the state could instead enforce tighter restrictions on redevelopment agencies or tie in funding to support California's laws regarding greenhouses gas emissions.

"Maybe we need to rethink the way we provide services to the community. That's where we're headed," he said. "...We all have to give. It's not just the state government -- The federal government isn't coming to our rescue here."

Last flights from Japan land at Travis Air Force Base

The last of the families of military and Department of Defense contractor families coming from Japan to the United State in a voluntary evacuations arrived Monday afternoon, wrapping up a weeklong itinerary of flights to Travis Air Force Base.

More than 5,000 voluntarily evacuees left Japan for the United States after a 9.0 earthquake rocked the country. The massive earthquake was followed by a devastating tsunami that rattled nuclear energy plants, putting residents in jeopardy of radiation exposure.

Travis Air Force Base alone received 2,500 evacuees with pets and belongings in tow, who were greeted by 400 volunteers from the base, according to 2nd Lt. Joel Banjo-Johnson, deputy chief of public affairs.

The voluntary evacuees left Japan to assist in expediting recovery efforts in Japan by reducing the demand for food, water, fuel and electricity during the national emergency, according to a press release.

Solano County Supervisor Mike Reagan said it was an awesome sight to see the reception the evacuated guests received after the chartered commercial jets landed at the base.

"I'm very impressed and I'm really proud of them," he said of the military troops. "It's the finest example of the (Department of Defense) taking care of its extended family and the community."

Reagan said base personnel voluntarily worked 15 to 16 hours days and continued to maintain smiles on their faces.

Translators, veterinarians, radiation screening, travel assistance and school enrollment were all on hand while the base continued doing its normal business.

NORTH BAY — North Bay counties are among the healthiest in the state, with Marin earning top honors in California and Sonoma and Napa among the top 15, according to a new report.

The County Health Rankings, recorded by the University of Wisconsin Population Health Institute and the Robert Wood Foundation, measure the overall health of nearly every county in all 50 states.

Sonoma County finished in 12th place in California, and is in the top 10 percent in several benchmarks of the study, including adult obesity, preventable hospital stays and the ratio of primary care providers to the population.

Researchers used four measures to determine the level of overall health for California counties — the rate of people dying before age 75; the percent of people who report being in fair or poor health; the numbers of days people report being in poor physical and mental health; and the rate of low-birth weight infants.

“We achieved this thanks to the commitment of our residents and the great work we do with our partners in the community,” said Rita Scardaci, director of health services in Sonoma County. “Working together, we have again shown why Sonoma County is one of the healthiest places to live, work and play.”

Sonoma County set goals through the Health Action partnership, a group that develops recommendations on local approaches to promote the health of the community while improve health care delivery. The latest results are an indication of its success, said Oscar Chavez, co-chair of Health Action.

Despite the county’s high placement, there is room for improvement. For example, access to healthful foods continues to be a “low health measure within the rankings” despite the agricultural heritage of Sonoma County.

“We are working in several ways to address this issue, said Supervisor Valerie Brown. “We’ve launched iGROW through Health Action, and we are currently evaluating what county land might be available for local, sustainable, community-based farming and agricultural use.”

Small and Medium Sized Bay Area Businesses Expect to Increase their Workforce over the Next Six Months, according to New Business Confidence Survey

San Francisco, Santa Clara and San Mateo County Companies Show Most

Promising Signs of Hiring

58% of Executives Think Bay Area Economic Conditions are Better than Six Months

Ago

SAN FRANCISCO, CA — The Bay Area Council today released its winter Business Confidence

Survey, and the results show that Bay Area CEO’s and executives are confident the region’s

economy is stabilizing and meeting expectations in the post-recession recovery. The business

confidence index – the number that distills the survey findings – registered at 61 out of 100, up 3

points from the last survey.

A reading over 50 signals positive economic times, while below 50 is negative. Last quarter’s

Survey showed the index reading at 58 – making this the sixth positive reading in a row since the

summer of 2009. One year ago, the reading registered 55, and in January 2009, the index reached

its all-time low of 31.

“We’re seeing optimism and confidence in all private industry sectors,” said Jim Wunderman,

President & CEO of the Bay Area Council. “According to our survey, the best place to look for a

job over the next 6 months is in San Francisco, on the Peninsula and Silicon Valley, in industries

like trade, professional and business services and IT. Another bright spot is that small and medium

sized businesses are finally showing signs that they might be expanding their workforces over the

next few months.”

The responses of the 485 CEO’s and top executives in the nine Bay Area counties surveyed

between February 17th and March 8th, show that overall, 58% think Bay Area economic conditions

are better than six months ago, up 11 points from last quarter’s survey. In addition, 61% said they

expect a better Bay Area economy six months from now, up 8 points from last quarter. The Survey indicates that a majority of executives, 53%, expect their workforces to remain the same over the next six months. However, 31% of executives stated they planned to increase their workforce. 45% of executives in San Francisco County and 38% of executives in Santa Clara County expect to increase their workforce over the next six months. Contra Costa County was the exception, with companies surveyed there expecting to increase their workforce by 23%, but also planning to decrease their workforce by 24% over the next six months – the highest reported decrease of all nine Bay Area counties.

Additionally, the Survey showed that 41% of Bay Area companies with 500-999 employees expect

to increase their workforce over the next six months, an increase of 19 points since last quarter’s

survey. 42% of Bay Area companies with 50-99 employees expect to increase their workforce over

the next six months.

Executives in specific industries are showing much more confidence that things will be better in six

months in their sector. 60% of executives in information technology, 62% of financial services

executives and 67% of leisure and hospitality executives expect their industry conditions to

improve. Confidence in the construction, education and health services industries remained flat,

while 65% of government leaders surveyed expect their situation to get worse.

“While there remains substantial noise and uncertainty in the world from fiscal problems in

Sacramento and Washington, D.C. to world events, clearly the local business signals are positive,”

said Lenny Mendonca, Director at McKinsey & Company.

***

Bay Area Business Confidence Survey:

The Bay Area Council developed the Bay Area Business Confidence Survey to measure employer

expectations of the Bay Area economy. The confidential survey of Bay Area business executives is

conducted quarterly by EMC Research. All members in the database were invited to participate

through e-mail and the Internet. The Survey results are weighted to reflect the approximate

percentage of employees in each Bay Area county.

About the Bay Area Council:

The Bay Area Council is a business-sponsored, public-policy advocacy organization for the ninecounty Bay Area. The Council proactively advocates for a strong economy, a vital business

environment, and a better quality of life for everyone who lives here. Founded in 1945, the Bay

Area Council is widely respected by elected officials, policy makers and other civic leaders as the

voice of Bay Area business. Today, approximately 275 of the largest employers in the region

support the Bay Area Council and offer their CEO or top executive as a member. Our members

employ more than 4.43 million workers and have revenues of $1.94 trillion, worldwide.

McKinsey & Company:

McKinsey & Company (www.mckinsey.com) is an international management consulting firm that

helps leading corporations and organizations make substantial and lasting improvements in their

performance. With approximately 6,000 consultants deployed from eighty-two offices in forty-three

countries, McKinsey has expertise on strategic, operational and technological issues.

Tuesday, March 22, 2011

http://www.timesheraldonline.com/ci_17657115?IADID=Search-www.timesheraldonline.com-www.timesheraldonline.comSorry, Newsweek -- Vallejo isn't dyingPublished By Times HeraldPosted: 03/20/2011 01:01:40 AM PDTHey, Newsweek, we've got news for you: Vallejo isn't dying!The magazine recently put Vallejo on its list of 10 dying U.S. cities. With that, the publication could put a hamper on the effort to restore the city to its glory prior to the closing of Mare Island Naval Shipyard.Ever since Mare Island was closed the soothsayers have predicted Vallejo's death. It's been a rough 15-plus years, but Vallejo continues to overcome the obstacles confronting it.Even in the midst of this region's most disastrous economic downturn, the city has battled its way through the past three years. And, don't forget, the soothsayers were calling Vallejo's death even during the good economic times of the first years of this century.Say what you will -- Vallejo is still alive!The closing of Mare Island was a hard blow. The city economy had revolved around the naval base. Many residents made their living at the base. Some were in their second or third generation as a family, going to the Mare Island every day.Stability, good pay, good benefits, camaraderie, neighbors, friends and families all revolved around Mare Island.When the closure came, it virtually devastated Vallejo.There just weren't any jobs to replace the thousands who were highly skilled in nuclear submarine maintenance. Some moved to other naval bases in the east, but most of these workers were young. And again the loss of this youth working force hurt Vallejo.Many took early retirement,and still live in Vallejo, enjoying a town they love.Today, as Vallejo struggles with the same challenges that face every other California city, the last thing it needed to read in a national magazine was that it is dying.If one just looks at the progress the community has made through these past few years it is apparent there are many good things happening.Mare Island is staging a comeback. Long overdue, today it has promising new businesses and educational and research facilities.Some of the city's major corporations, like Meyer Corporation, have maintained their presence in the city. While retail sales are hurting throughout Northern California, Vallejo continues to roll along and now it is looking forward to increased sales revenue through a rejuvenated auto industry and new major retail outlets like Lowe's.At the same time the city has worked hard to continue services for the poor, housing for the elderly and good police and fire protection. All of these have been accomplished because of the dedicated efforts of management and elected officials, and the sacrifices of the city's government employees.Vallejo still is the "home" for Northern California's blue collar workers, and several unions have remained and even expanded their efforts.And, the schools still open, the Little Leagues still play ball in the spring, and many families enjoy the pleasures of being on the San Francisco Bay.Not exactly a rosy picture -- but not a dying rose either.Call Vallejo and its residents resilient. Call them tough. Call them long-timers who won't give up on their community.Councilman Michael Wilson said Vallejo is "reinventing" itself. And, that's one of the best ways to characterize the community.There is just too much good about Vallejo and its location to believe its days are numbered.Let's hope Newsweek hasn't carved a tombstone for Vallejo. Vallejo doesn't need it. The magazine might keep it for themselves and consider reinventing news magazines -- based on the reports regarding weekly news magazines and their losses in revenues.Michael AmmannPresidentSolano Economic Development Corporation

Monday, March 21, 2011

The magazine recently put Vallejo on its list of 10 dying U.S. cities. With that, the publication could put a hamper on the effort to restore the city to its glory prior to the closing of Mare Island Naval Shipyard.

Ever since Mare Island was closed the soothsayers have predicted Vallejo's death. It's been a rough 15-plus years, but Vallejo continues to overcome the obstacles confronting it.

Even in the midst of this region's most disastrous economic downturn, the city has battled its way through the past three years. And, don't forget, the soothsayers were calling Vallejo's death even during the good economic times of the first years of this century.

Say what you will -- Vallejo is still alive!

The closing of Mare Island was a hard blow. The city economy had revolved around the naval base. Many residents made their living at the base. Some were in their second or third generation as a family, going to the Mare Island every day.

Stability, good pay, good benefits, camaraderie, neighbors, friends and families all revolved around Mare Island.

When the closure came, it virtually devastated Vallejo.

There just weren't any jobs to replace the thousands who were highly skilled in nuclear submarine maintenance. Some moved to other naval bases in the east, but most of these workers were young. And again the loss of this youth working force hurt Vallejo.

Many took early retirement, and still live in Vallejo, enjoying a town they love.

Today, as Vallejo struggles with the same challenges that face every other California city, the last thing it needed to read in a national magazine was that it is dying.

If one just looks at the progress the community has made through these past few years it is apparent there are many good things happening.

Mare Island is staging a comeback. Long overdue, today it has promising new businesses and educational and research facilities.

Some of the city's major corporations, like Meyer Corporation, have maintained their presence in the city. While retail sales are hurting throughout Northern California, Vallejo continues to roll along and now it is looking forward to increased sales revenue through a rejuvenated auto industry and new major retail outlets like Lowe's.

At the same time the city has worked hard to continue services for the poor, housing for the elderly and good police and fire protection. All of these have been accomplished because of the dedicated efforts of management and elected officials, and the sacrifices of the city's government employees.

Vallejo still is the "home" for Northern California's blue collar workers, and several unions have remained and even expanded their efforts.

And, the schools still open, the Little Leagues still play ball in the spring, and many families enjoy the pleasures of being on the San Francisco Bay.

Not exactly a rosy picture -- but not a dying rose either.

Call Vallejo and its residents resilient. Call them tough. Call them long-timers who won't give up on their community.

Councilman Michael Wilson said Vallejo is "reinventing" itself. And, that's one of the best ways to characterize the community.

There is just too much good about Vallejo and its location to believe its days are numbered.

Let's hope Newsweek hasn't carved a tombstone for Vallejo. Vallejo doesn't need it. The magazine might keep it for themselves and consider reinventing news magazines -- based on the reports regarding weekly news magazines and their losses in revenues.

Solano County, Vallejo begin public input on growth plan

To kick off a two-year conversation about how and where the Bay Area should grow, two agencies have released a long-range vision plan, and also plan to take it on the road.

The Initial Vision Scenario for the Sustainable Communities Strategy, mandated by state law, requires the Bay Area and other state metro areas to develop plans on ways to grow without adding to pollution and traffic.

Solano County and downtown Vallejo are two Bay Area priority growth areas in the document.

The county is slated to take on a fair portion of the Bay Area's growth over the next 20 years, Association of Bay Area Government Planning Director Ken Kirkey said.

Vallejo, Benicia and other Solano cities are also shown as growth hot spots -- areas that can accommodate growth without adding to sprawl.

"These are areas that are served by transit and where people can walk and bike and get around and drive less," Kirkey said.

Finding areas to promote development in and around cities is a key component of the plan, Metropolitan Transportation Commission spokesman Steve Goodwin said.

Some 97 percent of the Bay Area's growth over the next 25 years is projected for areas that are already urbanized, Goodwin said.

Between 2010 and 2035, agencies project Solano County to gain 39,600 more households -- a nearly one-third increase over present numbers, Goodwin said.

The Bay Area overall is expected to add nearly 2 million more residents, bringing its population to 9.4

million by the year 2035, Kirkey said.Friday's release of the key document signals the start of workshops and other public events, planners said."This is the beginning of a two-year process. It doesn't put anything else into play other than a conversation," Goodwin said.A final document must be adopted by spring of 2013.

Unemployed in area finding road blocks at many turns

Vallejo resident Barbara Wishom is doing everything she can to land a job. She has a Facebook account for networking, she attends career fairs and workshops, and she took two temporary jobs hoping it would help her land a permanent one.

Wishom said she worked at Washington Mutual in the residential home mortgages lending department for 14 years before she was laid off in 2008.

"I was embarrassed to tell people at first," Wishom recalled about losing her job.

She is not alone. Just like nearly 10,000 other Vallejoans, Wishom is still without a job despite all her efforts.

"It's a much different world now," said Robert Bloom, president of the Workforce Investment Board of Solano County.

Bloom oversees two centers of the federally funded Solano Employment Center -- in Fairfield and Vallejo -- and has noticed a significant increase in the number of clients the centers serve.

"We are inundated with people, and the workshops are overflowing," Bloom said.

That's largely due to the fact that unemployment rates have more than doubled in the past four years. Government figures show that in Solano County, the jobless numbers have climbed to 12.4 percent of the work force. The hardest hit has been Vallejo, with 15.1 percent unemployment, but the number of jobless in all seven cities has more than doubled in all cities.. .

Industrial markets in Napa and Solano counties overall continued to be sluggish throughout 2010 because of poor economic conditions.

While several significant lease transactions were completed during the year, a number of large new vacancies nullified any real traction. That said, tenant tour activity did increase toward year-end, which will hopefully result in a good start to leasing activity in 2011.

Another positive sign was the reemergence of investment sales as several leased investment transactions closed, primarily in the fourth quarter.

Year-end 2010 overall vacancy rate for industrial space in Napa and Solano counties was 13 percent, up slightly from 12.2 percent at the end of the fourth quarter in 2009.

Napa County had 8.5 percent of 955,000 square feet of industrial space available at the end of 2010, compared with 7.8 percent vacancy a year before.

Of 3.91 million square feet in Solano, 15 percent was available in the fourth quarter of 2010, compared with 14.3 percent at the end of 2009.

The rise in Napa County’s vacancy came from 364,000 square feet of Constellation Brands warehouse space available for sublease in the fourth quarter at 80 Technology Court in south Napa. Constellation relocated certain distribution to Lodi, where triple-net rents are in the range of mid-20 cent a square foot for similar space.

As demand from consumers for lower- to mid-priced wines continues, a number of wineries with brands serving that segment posted strong sales and growth last year. Trinchero Family Wines, which makes Sutter Home, expanded by 164,000 square feet in south Napa, while premium-tier wine programs for Diageo Chateau & Estate Wines pulled back from 150,000 square feet south of Sonoma and Constellation from south Napa.

Solano County had its share of new vacancies. Downsizing and consolidation as a result of new technology helped put 450,000 square feet back on the market. Applied Materials vacated its 100,000-square-foot manufacturing plant at 2700 Maxwell Way in Fairfield as part of closing optical-coating operations on a national basis.

Vallejo-based Meyer Corp. vacated more than 320,000 square feet of leased facilities and one of their owned facilities. A newly constructed 166,000-square-foot warehouse in Fairfield has the equivalent storage of about 700,000 square feet because of its 100-foot height and automated racking systems.

Tom Duffy Co. also vacated a 127,000-square-foot warehouse at 5200 Watt Court in Fairfield in January 2010, consolidating in the Central Valley.

The only notable land sale was E&P Properties, affiliated with Metropolitan, purchased 6.2 acres in Napa Valley Gateway Business Park. E&P is pursuing entitlements to build a 107,000-square-foot warehouse, 70,000 square feet of which Metropolitan would occupy.

Tenant tour activity increased in the fourth quarter, but it remains to be seen if this will result in increased transactions in 2011. We expect continued downward pressure on rental rates because of the significant amount of inventory available in both the Napa and Solano markets, compounded by a lack of tangible demand.

Investment sale activity should continue for quality buildings with good-credit tenants and substantial remaining lease terms. Little, if any, speculative industrial product is expected to be completed in 2011.